Download PSI Real Estate Exam Prep: 2024-2025 and more Exams Real Estate Management in PDF only on Docsity!
PSI REAL ESTATE EXAM PREP 2024-
WITH 100% CORRECT SOLUTIONS
“What is it called when a borrower attempts to sell a property without paying off the loan? -
CORRECT ANSWER Alienation"
"What is the term for the money that was lent to a borrower in exchange for the promise of
future repayment? - CORRECT ANSWER Loan"
"Javier and Karina own property and have the right of survivorship. What type of ownership to
Javier and Karina share? - CORRECT ANSWER Joint Tenancy"
"Salvador is the only owner of parcel of land without a condition. What type of ownership does
Salvador have? - CORRECT ANSWER Fee simple absolute"
"The owner of a rental property in a college town wants to keep "a certain clientele" in its units to preserve "the integrity" among the property. When a rental applicant appears to not belong to this desired clientele, the landlord attempts to persuade the applicant to look elsewhere for
housing. May the landlord do this? - CORRECT ANSWER No"
"What is the term for the court order that allows a lender to demand that the borrower pay any
outstanding balance remaining on the loan after a foreclosure sale? - CORRECT ANSWER
Deficiency judgement"
"Which service would a property owner not expect a property manager to handle for them? -
CORRECT ANSWER Paying the HOA fees in the property's subdivision"
"Karen and Lucy are entering into a contract for sale of land. Closing is to take place next month. Two weeks later, Lucy refuses to sell the land to Karen. Subsequently Karen gets a remedy from
the court forcing Lucy to sell the land to Karen. What was Karen's remedy? - CORRECT
ANSWER Specific performance"
"What law was passed to prevent lenders, real estate agents, and title companies from giving
kickbacks to each other during a real estate transaction? - CORRECT ANSWER Real Estate
Settlement Procedures Act (RESPA)"
"A seller is selling Ulysses' property and informs the broker in a letter that ulysses does not want to hear any offers below $100,000. A few days later, a prospective broker submits a $95,000 offer
to the seller's broker. Is the broker required to present the offer to the seller? - CORRECT
ANSWER No"
"The cost approach uses several factors to determine the estimated replacement cost of a
property. - CORRECT ANSWER The cost approach uses several factors to determine the
estimated replacement of a property. Which factor is NOT used?" "A property sold for $200,000. The selling agent earned a 3% commission and has a 60/40 split with the agent's sponsoring brokerage (with the brokerage receiving the 40%). What amount will
the agent recieve? - CORRECT ANSWER $3,600"
"A buyer wants to purchase a seller's property buy can only get a loan for half the sales price. The seller agrees to carry a mortgage for the balance of the sales price. Which type of seller financing
is this? - CORRECT ANSWER Junior (subordinate) mortgage"
"Which of the following is not personal property? - CORRECT ANSWER Fixture"
"Russell owns land right next to a stream of water that passes across Russell's vast land. However, Russell does not use the water and just lets the water flow its natural course. Summer is a cattle farmer that lives five miles away down-stream and travels to the stream to collect water so that summer may water her cattle. One day, Russell decides that he's going to divert the stream so
that he may grow a garden. Under a riparian jurisdiction, may Russell do this? - CORRECT
ANSWER No"
"A building that is valued at $120,000 is being depreciated over 27.5 years. After 17 years, how
much will the building have depreciated? - CORRECT ANSWER $74,181.88"
"Betsy is selling their grandmother's house to Christopher because Betsy's grandmother has since moved to Bota Raton. The house was built in 1963, but Betsy's grandmother did not own the property until 1982, after Betsy's grandfather was deceased. What must be given to Christopher
during the escrow phase? - CORRECT ANSWER EPA lead-based paint pamphlet"
"What is the one major difference between lien theory states? - CORRECT ANSWER The deed
does not remain with the buyer in title theory states."
"Which document shows the chain of title of a property? - CORRECT ANSWER Abstract"
"A buyer recently told their broker that they were unsure whether they could obtain financing for
the current property purchase. What must the broker do? - CORRECT ANSWER Disclose the
matter to the selling side" "Kyle and Luke are in a lease agreement, Luke is the tenant and Kyle is the landlord. Luke is the former owner of the premises that is currently being leased from Kyle for a long-term duration.
What is this? - CORRECT ANSWER Sale-Leaseback"
"Under the statue of, which of the following spoken, intended statements may constitute a valid
contract? - CORRECT ANSWER A six month lease"
"In addition to the agent-principal relationship, which of the following would be considered a
fiduciary relationship? - CORRECT ANSWER Attorney client"
"A broker discovers there is a broken blender in the kitchen. Must they disclose this? - CORRECT
ANSWER No, because it is not a material fact"
"Esmerelda recently became unemployed and was unable to meet some of the financial obligations arising from their property, and now the government has a lien on Esmerelda's
property. What did Esmerelda not pay? - CORRECT ANSWER Property tax"
"What is an easement? - CORRECT ANSWER A right to use another's land?"
"Under the Civil Rights Act of 1968, as originally passed, which of the following was not a
protected class? - CORRECT ANSWER Handicap or disability"
"A real estate license sold a house for $180,000. If the total commission on the transaction was
6%, what is the total commission in value? - CORRECT ANSWER $10,800"
"Donna is renting out a residential property. Whom may Donna discriminate against? -
CORRECT ANSWER A person with a pet"
"Which document shows the transfer of money between parties at the conclusion of a
transaction? - CORRECT ANSWER Closing statement"
"Which entity publishes regulations and guidelines for the designated senior properties? -
CORRECT ANSWER The department of housing and development"
"While giving a tour to a prospective buyer, the broker says, "You will not find a better house than this; it's the best innthe neighborhood!" However, there are multiple properties avaliable in the
neighborhood. Which term best describes the broker's statement? - CORRECT ANSWER
Puffing" "Meredith has a big event coming up on Friday, August 20, and they want their house by Wednesday, I will pay you $3,000." Neil responds, " I accept your offer, but it must be a cash payment." If there were no further contact between Meridith and Neil responds, "If you paint my house by Wednesday, I will pay you $3,000." Neil responds, "I accept your offer, but it must be cash payment." If there were no further contact between Meredith and Neil on that day, which
kind of contract was formed between the parties on Sunday? - CORRECT ANSWER There is no
contract"
"Who may get a home warranty? - CORRECT ANSWER Both a buyer and a seller"
"Which of the following is implied within a lease agreement? - CORRECT ANSWER Covenant of
quiet enjoyment"
"Which of the following is not a characteristic that makes land valuable or desirable? - CORRECT
ANSWER Abundance"
"For the purposes of fair housing law, who is considered a child? - CORRECT ANSWER Persons
under the age of 18" "As part of the truth in lending act, a loan estimate is provided within three days of a buyer
applying for a loan. What does it contain information about? - CORRECT ANSWER Estimated
taxes and insurance"
"What is the process of placing documents into public record? - CORRECT ANSWER
Recording"
"A lot has a depth of 90ft and an area of 6,480 sq ft. What is the frontage of the lot? - CORRECT
ANSWER 72 ft"
"Zelda owns a property in a district that recently underwent a zone change, which has caused them extreme hardship in the use of property. The property has been in Zelda's Family for multiple generations, and Zelda wants to keep the property so that Zelda's heirs may use it.
Which of the following may Zelda seek for the experienced hardship? - CORRECT ANSWER A
variance"
"Who needs to be a licensed real estate agent? - CORRECT ANSWER An auctioneer who
auctions farmland"
"What is an appraiser responsible for? - CORRECT ANSWER Estimating value"
"Under an eminent domain proceeding, what is the amount of compensation the property owner
is entitled to? - CORRECT ANSWER The current reasonable fair market value"
"Quentin and Rachel entered contract. Subsequently, Quentin refused perform their obligation.
What is the term for Quentin's conduct? - CORRECT ANSWER Revocation"
"Isaac and Jessica are in a lease agreement, Isaac is the the tenant and Jessica is the landlord. Isaac pays a fee for a leased premises that fluctuates based on an index. What type of lease is
this? - CORRECT ANSWER Index lease"
"Recently, indigo rented a condo to Jackson. Jackson required instillation of a modification to accommodate a disability, and indigo allowed the instillation for Jackson's accommodation.
Where may a modification NOT be made? - CORRECT ANSWER Outside the building"
"Who needs to sign a dual agency contract, and when do they need to sign it? - CORRECT
ANSWER The buyer before an offer is presented and by the seller before acceptance"
"What type of property may qualify for a 1031 exchange? - CORRECT ANSWER Investment
property" "Vincent and Wendy are married and are buying a property. Their combined annual income is $60,000. Subsequently, a lender determines that Vincent and Wendy qualify for payments that
constitute 23% of their income. What is the value of the monthly payments? - CORRECT
ANSWER $1,150.00"
"Global Company X wants to purchase several large tracts of adjacent properties but does not want to reveal interest in the land until the deals are done. Global Company X contracts with an agent, Alice, to act the principal in the transactions. In this scenario, which term best describes
Alice's role? - CORRECT ANSWER Undisclosed principal"
"Wendy lives in a constructed home that was built ten years ago and was purchased from a builder. The written sales contract did not state any additional warranties regarding the property.
Does the home have a warranty of fitness? - CORRECT ANSWER No, because the home was
built ten years ago." "Dillion, a non-licensed professional, discovers an open source of asbestos in their commercial
property. Which of the following actions should Dillion immediately take? - CORRECT
ANSWER Encapsulation"
"A developer recently developed land and homes to be sold on the market. In the covenants they recorded into record, they stated that the homes may be used only as single-family homes. Is this
a lawful exercise of private regulation on land? - CORRECT ANSWER Yes"
"Briana and Caden are in a dispute on who owns a certain property. What type of lawsuit should
be filed? - CORRECT ANSWER Quiet title action"
"A seller has prepaid landscaper service fees for a 3-month duration. The prepayment amount was $900. At the end of the 1st month, the property was sold to a buyer. What is the prorated
amount that will be debited to the buyer? - CORRECT ANSWER $600"
"Anthony tells Beverley, "If you paint my house before the weekend, Ill pay you $3,000." Beverly says, "Great, you've got yourself a deal." Anthony and Beverly shake hands. Subsequently, Beverly finishes painting the house on Friday. Which type of contract did the did the party create?
- CORRECT ANSWER They created unilateral contract" "A buyer named Bill is the client of a licensee named Laura, and they want to buy a house that
Laura has recently listen. Which of the following statements is true? - CORRECT ANSWER The
seller and buyer must be informed of the situation and agree to limited representation" "Recently, a buyer purchased a new home construction from a neighbor, who purchased it from a builder last month. The sales contract did not contain any additional warranties, and the neighbor did not inspect the property. Subsequently, a defect was discovered. May the buyer pursue a new
home construction claim against the builder? - CORRECT ANSWER The answer depends on
the jurisdiction"
